After Federal Reserve Chair Jerome Powell reaffirmed the institution’s commitment to continuing to raise rates in order to combat inflation, Bitcoin prices fluctuated in a small range around $20,000 as investors became less willing to take significant risks.

After trading below that crucial round-number threshold over the weekend, the largest token increased as much as 2% on Monday to $20,412. Other cryptocurrencies came in a variety. Equities continued to fall on Saturday after Powell’s comments, with the Nasdaq Composite index down 0.7% as of 2:20 p.m. in New York.

CEO of the consulting company Venn Link Partners Cici Lu stated that “money is flowing out of risky assets.”

When Bitcoin hit lows in recent months, the $20,000 level served as support, but the cryptocurrency had recently climbed higher. It had been above that threshold earlier in August and hadn’t fallen below that level prior to Saturday. Concerns about rate hikes cut short that mini-rally, and since August 15 Bitcoin has fallen about 17%.

The past few days have been challenging for riskier assets as traders process comments from Fed Chair Powell, who reaffirmed that the central bank is willing to continue monetary tightening, even at the risk of an economic downturn.

However, Matt Maley, chief market strategist at Miller Tabak & Co., noted that because stocks are closer to their 2022 lows than digital assets are, “the downside potential for stocks is actually more than for the cryptocurrencies right now.”

Many strategists have identified $20,000 as a crucial level for Bitcoin, though levels of support may also be lower.

Katie Stockton of Fairlead Strategies predicts long-term support in the range of $18,300 to $19,500. A “real area of importance” near the June lows, around $17,500, would allow for a 100% alternate wave projection of the most recent decline from mid-August. According to Fundstrat strategist Mark Newton, who flagged these key areas in a note on Friday.

It could be another big week for cryptocurrency. According to Tammy Da Costa, an analyst for DailyFX, who noted on Saturday that reports on American manufacturing and employment are due this week and may have an impact on central bankers’ monetary policy. Technically, a hold below $21,000 and below the bearish flag’s lower bound at about $20,300 could cause price action to return to the July low of $18,905, with the June low then coming into play at $17,592.

According to data from Coinglass, the last two Fridays have been difficult ones for the cryptocurrency market, with the most recent one seeing the liquidation of $288 million in long positions. The most long positions were liquidated since June 13 on August 19, totaling $562 million.

The second-largest token, Ethereum, initially fell as much as 4.1% on Monday before climbing back and then gaining 3.5% to trade at $1,530, which is still below its recent high of $2,000 at the time. Prior to its eagerly awaited Merge upgrade, which is scheduled for mid-September, it has been fluctuating.

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